Paragon Development Finance has agreed a £4.5 million revolving finance facility to support the delivery of 34 sustainable homes at igloo Regeneration’s Riverside Sunderland development.
The funding will support the delivery of the residential scheme across two phases, providing a mix of two, three and four-bedroom townhouses, maisonettes and apartments at the city centre regeneration site.
Riverside Sunderland forms part of one of the UK’s largest urban regeneration projects, which will create three connected neighbourhoods featuring new homes, commercial space, leisure facilities and public green areas.
Working alongside Sunderland City Council and Housing Growth Partnership (HGP), igloo is delivering a low-carbon neighbourhood on the former Vaux Brewery site.
The first phase of the development will provide 18 townhouses and maisonettes, creating the first residential cluster within the Vaux neighbourhood. A second phase will deliver 16 apartments based on designs developed through the government’s Homes of 2030 competition.
All homes will be built using modern methods of construction and developed through igloo’s Footprint® process, which focuses on environmental performance, community and placemaking. The homes are designed to be highly energy efficient, adaptable and accessible, while reducing both embodied and operational carbon.
The development is expected to qualify for Paragon Development Finance’s Green Homes Initiative, which offers developers a 50% reduction in loan exit fees where at least 80% of private homes achieve an EPC A rating and any remaining homes achieve a minimum EPC C rating.
The transaction marks the second development finance facility Paragon has completed with igloo, following its support for the Dundashill regeneration scheme in Glasgow. Both transactions were led by relationship director Toby Burgess, supported by portfolio manager Joshua Mann.
Pete Conboy, project director at igloo, says: “This is a landmark residential development within the ambitious Riverside Sunderland masterplan, transforming the former Vaux Brewery site into a vibrant, future-ready urban community.
“With Paragon and HGP’s support, igloo is delivering 34 new and much-needed city centre homes, arranged across two carefully planned phases, each designed to create a new benchmark for sustainable and contemporary urban living.”
Michelle Williams, project manager at igloo, adds: “Paragon has shown a clear understanding of and support for our approach and ambitions, and the team’s support – particularly with its Green Homes Initiative – enables us to move confidently into delivery at this important site.”
Mike Murphy, investment director at HGP, commented: “Riverside Sunderland is the third investment through our Strategic Partnership with PFP-igloo, which is targeting the delivery of over 1,200 highly sustainable, eco-friendly homes across the UK’s regional cities.
“This development will create a real sense of place within Sunderland with striking designs and deliver much needed high sustainable homes within the city centre.”
Toby Burgess, relationship director at Paragon Development Finance, says: “We are pleased to be supporting igloo once again following the success of Dundashill, and to play a role in the delivery of Riverside Sunderland.
“This is a well-considered scheme with strong sustainability credentials, delivered by a developer with a proven track record in complex urban regeneration.
“The structure of the facility has been tailored to support the phased delivery of the homes, and we look forward to continuing our relationship with the igloo team as the development progresses.”
